World Bank Funds $80 Million MIDROC Project to Add Green Certified Hotels in Addis

June 11, 2026

Mintesinot Nigussie

The International Finance Corporation, the World Bank's private-sector investment arm, has extended an 80 million US dollars long-term loan to MIDROC Investment Group to finance the development of new green certified hotel capacity in Addis Ababa, alongside the refurbishment of existing premium hospitality assets.

The financing is directed at expanding Ethiopia’s upper-tier hotel supply as the country prepares to host major international events, including the United Nations Climate Change Conference in November 2027. The project is expected to ease pressure on accommodation capacity in the capital, where demand for international-standard hotels continues to grow.

The investment is projected to support more than 9,400 direct and indirect jobs, with a focus on formal employment opportunities for young people and women. It comes against the backdrop of a labour market absorbing about two million new entrants each year.

Tourism accounts for roughly 10 percent of Ethiopia’s gross domestic product and supports about 3.5 million direct and indirect jobs, making it one of the country’s most labour-intensive service sectors.

Ethiopis Tafara, Regional Vice President for Africa at the International Finance Corporation, said tourism remains central to job creation and economic participation.

“Tourism is a powerful engine for jobs and revenue, creating pathways to work and enterprise across the economy,” he said. “Our partnership with MIDROC Ethiopia reflects how we work best with strong partners on assets that anchor growth, expanding quality hospitality capacity while supporting thousands of jobs and advancing opportunity for young people and women.”

MIDROC Investment Group said the project would support efforts to modernise Ethiopia’s hospitality sector and strengthen its role in employment generation.

Jemal Ahmed Abdu, chief executive officer of MIDROC Investment Group, said the investment is strategically significant for the group. “This collaboration will play a pivotal role in modernising the domestic hospitality sector while delivering a sustained and meaningful impact on job creation in Ethiopia,” he said.

The project will introduce Ethiopia’s first green certified hotels, reflecting early-stage development of the country’s green building ecosystem, where formal certification systems remain limited.